Odisha lost Rs 2600 Crore for non-revision of royalty in 2012-13

The state government has lost Rs 2609.19 crore in 2012-13 as mining revenue for non-revision of royalty rates by the Centre.

The state collected Rs 4061.13 crore revenue from the mining sector in the last fiscal. Had the royalty rates been revised in time, this could have been Rs  6670.32 crore.

The calculation is based on the presumption that the level of production of minerals is at par that of the year 2012-13.

Estimated loss in revenue include Rs 83.90 crore from bauxite mining, Rs 204.69 crore from chromite, Rs 0.89 crore from dolomite, Rs  2280.77 crore from iron ore, Rs 4.95 crore from limestone and Rs  33.99 crore from manganese.

Last fiscal, the state collectedRs  66.28 crore royalty on bauxite, Rs 323.43 crore on chromite, Rs 7.39 crore on dolomite, Rs  3603.82 crore on iron ore, Rs 31.28 crore limestone and Rs 28.93 crore on manganese.

The royalty rates of major minerals (other than coal, lignite and sand for stowing) were supposed to be revised on August 13, 2012.

A study group, constituted by the Centre for revision of rates, was formed on September 13, 2011 and the state government had submitted a proposal before the group on December 27, 2012 for the revisions.

If the study group had proposed the Centre to approve the state government’s suggestion and the same would have been approved by the Centre, then Odisha would have got more revenues from the mining sector, said Rajanikant Singh, state minister for steel and mines.

Besides seeking revision in royalty rates, the state government has been vociferously demanding introduction of MRRT (Mineral Resource Rent Tax) on windfall gains made by the miners to ensure that the super normal profits earned from mining activities do not get accumulated in the hands of few miners.

It may be noted that mineral revenue is considered a major source of income of the state government as Odisha possesses 35 per cent iron ore deposits, half of bauxite reserve and a quarter of coal resources of India.

Singh said, the state government has collected Rs 1288.49 crore in April-June quarter and Rs 1290.62 crore in July-August quarter as mining royalty.